Tax Refund Flap Settled

Money Available To Those Who Ask

December 21, 2007|By TRACY GORDON FOX; Courant Staff Writer

COLCHESTER — It turned out to be much ado about $5.

Residents who came to a town meeting Thursday night upset over the town's decision not to give tax refunds of $5 or less, left satisfied after they learned taxpayers could request the money in writing, even if it is under $1.

The issue arose after multiple budget referendums forced the town to send out tax bills before the budget was finally passed in September. That meant that everyone who owned a car was pretty much overcharged, most by under $5.

But it would have been more expensive to send out all the bills. So First Selectwoman Linda Hodge called a town meeting proposing an ordinance to "retain any tax payments received, that for whatever reason, are in excess of the amount due, provided the amount of the excess payment is less than five dollars."

That drew the ire of some residents who said taxes are taxes, no matter how little.

"I think the real problem is fiscal accuracy," said resident Merja Lehtinen, who spoke at the town meeting. "This is a matter of principal and it's wrong."

Most residents who overpaid in real estate tax will have their bills adjusted in January when they pay the second installment. If they paid in full in July, they can ask for a rebate, if they are due one.

The bigger problem is automobile taxes and other personal property taxes, which would mean thousands of taxpayers overpaid by $5 or less.

Hodge said she and town officials did hours of research on the subject, and decided to propose the ordinance, which was approved Thursday, to avoid having to send out all those checks, which would cost almost as much as the refund itself.

"I can't tell you the amount of time we spent going to legal and to auditors," Hodge said. "Connecticut general statutes allow this to take place."

Anyone who overpaid by more than $5 will be refunded with a check in the mail, she said. Those who do not get a refund and want to find out whether they are owed 30 cents or $5 can put a request in writing and bring it to town hall.

That solution satisfied Lehtinen, and others who came out to the meeting,

"If people can go in and get their money back, I'm cool with that," she said, adding that the tax issue most affected poorer residents.

Lehtinen said most people probably won't bother to get the $5 or less refund.